junior debt

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Related to Subordinated loan: Subordinated Debentures

Junior debt (subordinate debt)

Debt whose holders have a claim on the firm's assets only after senior debtholder's claims have been satisfied. Subordinated debt.

Junior Debt

A class of debt that, in the event of insolvency, is prioritized lower than other classes of debt. The most common kind of junior debt is an unsecured loan, which has no collateral. Another kind of junior debt is a secured loan in which another loan has priority on the collateral; a second mortgage is an example of a secured junior debt. This class of debt carries higher risk but also pays higher interest than other classes.

junior debt

A class of debt that is subordinate to another class of debt issued by the same party. Junior debt is more risky for an investor to own, but it pays a higher rate of interest than debt with greater security. Debentures are junior debt. Compare senior debt.
References in periodicals archive ?
According to the company, this subordinated loan was related to the financing arrangement in 2015.
The subordinated loan qualifies as Tier II capital under the recently modified regulations of the Central Bank of Egypt.
After giving effect to the payment of the subordinated loan, we have approximately $10.
1 billion) of subordinated loans it had received from the central bank boosting its capital.
The subordinated loan facility, which qualifies as Tier II Capital will improve the overall capitalisation of the Bank, while at the same time help to drive down our cost of funding as it enables us to repay more costly subordinated facilities.
With these two payments UNB has fully settled the Tier 2 Subordinated loan of AED 3.
The subordinated loan is on the same terms as the existing STB subordinated loan from Arbuthnot.
AUB also said it had agreed with IFC to extend the duration of an existing $200m tier-II convertible subordinated loan issued by IFC by two years to 2018.
The life insurer has raised JPY320bn by taking out a perpetual subordinated loan last October, but most of the funds were used to redeem before maturity a JPY283bn subordinated loan.
The company intends to use net proceeds of the financing to make a USD500,000 loan payment to Bankers Petroleum Ltd (Bankers) under a subordinated loan agreement with Bankers, and repay USD1.
Image said if it can reach a definitive agreement, the acquisition will be closed by year's end and will be financed principally with the proceeds of a five-year convertible subordinated loan from Image Investors Co.
9 million, an $800,000 subordinated loan and $400,000 in personal equity financed the deal.